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Xerox Corporation
67
Note 11 – Debt
Short-term borrowings at December 31, 2005 and 2004 were as
follows (in millions):
2005 2004
Current maturities of long-term debt $ 1,099 $ 3,038
Notes payable 40 36
Total $ 1,139 $ 3,074
We classify our debt based on the contractual maturity dates
of the underlying debt instruments or as of the earliest put date
available to the debt holders. We defer costs associated with debt
issuance over the applicable term or to the first put date, in the
case of convertible debt or debt with a put feature. These costs
are amortized as interest expense in our Consolidated Statement
of Income.
Long-term debt, including debt secured by finance receivables
at December 31, 2005 and 2004 was as follows (in millions):
Weighted Average
Interest Rates at
U.S. Operations December 31, 2005 2005 2004
Xerox Corporation
Notes due 2006(1) –% $ – $ 15
Notes due 2007(1) – – 25
Notes due 2008 1.31 27 27
Senior Notes due 2009(2) 9.75 620 627
EuroSenior Notes due 2009 9.75 260 297
Senior Notes due 2010(2) 7.13 688 704
Notes due 2011 7.01 50 50
Senior Notes due 2011(2) 6.88 752 758
Senior Notes due 2013(2) 7.63 542 550
Convertible Notes due 2014 9.00 19 19
Notes due 2016 7.20 251 252
2003 Credit Facility due 2008 6.22 300 300
Subtotal 3,509 3,624
Xerox Credit Corporation
Yen notes due 2005 – – 970
Yen notes due 2007 2.00 255 292
Notes due 2008(1) ––25
Notes due 2012(1) 7.07 75 125
Notes due 2013 6.50 60 59
Notes due 2014 6.06 50 50
Notes due 2018 7.00 25 25
Subtotal $ 465 $1,546
Weighted Average
Interest Rates at
U.S. Operations December 31, 2005 2005 2004
Other U.S. Operations
Borrowings secured by
finance receivables(3) 4.78 $ 1,701 $ 2,486
Borrowings secured by
other assets 5.67 220 257
Subtotal 1,921 2,743
Total U.S. Operations 5,895 7,913
International Operations
Xerox Capital (Europe) plc:
Japanese yen due 2005 – – 97
U.S. dollars due 2008(1) ––25
Subtotal – 122
Other International Operations
Pound Sterling secured
borrowings due
2007-2008(3) 6.06 581 685
Euro secured borrowings
due 2005-2010(3) 3.73 526 839
Canadian dollars secured
borrowings due
2005-2007(3) 5.49 174 426
Other debt due 2005-2010 5.86 62 103
Subtotal 1,343 2,053
Total International Operations 1,343 2,175
Subtotal 7,238 10,088
Less current maturities (1,099) (3,038)
Total Long-term debt $ 6,139 $ 7,050
(1) Certain debt instruments, totaling $140, were redeemed in 2005 prior to their
scheduled maturities.
(2) As of December 31, 2005, these senior notes were guaranteed by our wholly
owned subsidiary Xerox International Joint Marketing, Inc.
(3) Refer to Note 4 – Receivables, Net, for further discussion of borrowings secured
by finance receivables, net.
Scheduled payments due on long-term debt for the next five years
and thereafter areas follows (in millions):
There-
2006 2007 2008 2009 2010 after Total
$1,099 $1,582 $978 $989 $727 $1,863 $7,238
Xerox Annual Report 2005